Abstract

This research is testing the capability of several forewarning system models to predict bank bankruptcy. We apply these models on Indonesian commercial bank data during the period of 1994/ 1995 - 1999/2000. Considering the data incompleteness and or their inexistence, our data finally contains of 74 failed-banks and 81 non failed-banks.Our result shows the Trait Recognition model (TR) is more pre-eminent than Logit and Multiple Discriminant Analysis model (MDA).Keywords : Trait Recognition (TR), Logit, Multiple Discriminant Analysis (MDA), Bank BankruptcyJEL: C25, C35, G21, G33

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